In the past the videogame industry has been described as recession-proof. Looking back at articles from earlier this year the general consensus seemed to be that the industry could survive a small recession.

http://www.msnbc.msn.com/id/23472166/

The mindset behind such claims harkens back to past depressions when the public continued to go out to the movies, willing to pay the fees if just to escape from the dark realities of their everyday lives. However today the United States market and the global market itself is on the edge of complete disaster and so the question must be asked once again, is the videogame industry recession proof?

I believe the answer to be a resounding no. While it is difficult to map videogame sales against market trends due to the industries relatively short time on the market and the lack of data, it is possible to look at another previously presumed recession proof market, Las Vegas.

Since 1970, Las Vegas saw gambling revenues fall only once, in the aftermath of 9/11. Gaming revenues in 2002 where less than a percent lower than they were in 2001. As of May of this year convention revenues are down 7.1 percent, gambling revenues for the top casinos are down 3 percent, average daily room rates fell 2.7 percent, and the stock prices of some of the largest Strip resorts are down as much as 42 percent. Don't forget to add in the fact that 4 percent fewer cars crossed the California-Nevada border in March and the closure of three airlines that had substantial services to Las Vegas.

http://economictimes.indiatimes.com/News/International_Business/Recession-proof_Las_Vegas_hit_by_US_economic_downturn/articleshow/3048220.cms

Looking at this data and with economic woes more worrisome than in recent memory, it is possible to presume that the entire videogame industry is about to see a major shift in sales trends. With new games retailing at around $60 plus the exuberant price of today’s consoles the industry has pushed itself into a sticky situation. For the past few generations companies have continued to increase the prices for their gaming equipment exponentially and as a result consoles have gone from being impulse purchases to calculated financial investments. No longer can the videogame industry be compared to the Movie industry of the 1930's.

Today, in the face of one of the biggest economic crisis in recent memory we must wait and see how the consumer reacts. Will sales continue as normal, will consumers look for the cheapest options available, will the relatively low-priced handheld market become the new spearhead for gaming or will we see a complete collapse of sales in all sectors of the videogame industry? I can't say for sure, all I can tell you is that we’re in for some big changes.

It is to a certain extent especially when the purchaser of the game is the player of the game. The games parents buy for their kids may suffer though. Playing games is cheaper than going on vacations and other hobbies that provide similar thrill.

@WessleWoggle

That may have been the case before but do you think that will continue when the main provider for the family is worried he's not going to have a job in a month?

Also sorry for the wall of text I was just in the writing mood although I should probably be concentrating on my Calc II test tomorrow or my genetics homework :/

I don't think it will have any effect on gaming sales.

As previously stated, people play games to get away from the real world. This allows them to do that.

I predict that nothing will change. If that's the case, then anything expensive will not be bought. TVs, Cell Phones, iPods, etc.

People will cut back on the excess like eating out, and driving in excess, they won't let go of their ways of escaping the real world.

@DMeisterJ

In a way their not being bought. The adoption of the HD-TV's and bluray has been excruciatingly slow. In a healthy market the HD format would be flourishing but as it's seen today it is an unnecessary advancement.

Ipod sales have also slowed down significantly with a small boost due to the new model release of the itouch. Nevertheless overall sales are not increasing.

Also TV's and in a way Ipods have lodged themselves in the consumers psyche as must have items, in the same way the internet has. Videogames are far from reaching that point yet in the mass market

lol you seem to be a very carefree guy

The problems surfaced and the economy slowed down before 2008 began, yet the consoles have been selling more this year than they did last year. The downturn may temper the demand for video games somewhat, but video games are a nice alternative to taking the family on vacation. That is why movies were so popular. Instead of spending massive amounts of money on vacations, people could spend less money on other leisure activities...video games happen to be such an alternative.

I think this might become a more prevalent trend later on but it won't be felt during the holiday season. The bulk of games are sold during this time and I can't picture forgoing video games for something cheaper. There doesn't seem to be a suitable substitute. However, I could be totally wrong and just as carefree as WessleWoggle lol.

True video games have been selling suprisingly well inspite of the economic problems but the current crisis is larger than anything we've previously been through in the last 20 years. At this point one has to wonder how long the video game market can go on without being affected.